SYDNEY, Aug 17 (Reuters) - Westpac Banking Corp WBC.AX , Australia's No. 3 lender by assets, on Monday said stressed loan levels eased 3 percent in the third quarter to A$9.85 billion ($7.3 billion) while 90-day delinquencies in Australian mortgages ticked up 2 basis points.
Total provisions to gross loans dropped to 56 basis points during the quarter ending in June, it said in a statement. Tier-1 capital rose 20 basis points from March to 9 percent, helped by a A$2 billion dividend reinvestment plan and the sale of part of its stake in its wealth management arm BT Investment BTT.AX .
Westpac does not disclose detailed quarterly earnings numbers but it said some portfolios including retail, manufacturing and utilities experienced a rise in stress, while the mining portfolio remained strong.
Bad debts have ticked up for Australia's banking sector although they remain around historical lows. Westpac's disclosure comes after rival Australia and New Zealand Banking Group ANZ.AX saw bad debt charges climb 13 percent to A$877 million for the quarter to June 30. ($1 = 1.3569 Australian dollars)